The olive sector in Alentejo, Portugal is experiencing a breakdown due to the exhaustion of storage capacity for olive pomace, a byproduct of olive oil production, as the region is expected to produce a record 180,000 tons of olive oil and 900,000,000 Kgs of pomace. The situation is causing harm to farmers and companies, and threatening the value chain. Despite warnings from the Cooperative sector, no authorizations have been given to increase capacity or open new units. The lack of funding for the transformation and processing of bagasse, as seen in the PDR2020, and the refusal of competent bodies to develop a strategic plan for the sector have led to these structural imbalances.